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Why is Zambia So Poor 49yrs After Independence?
Zambia’s post-Independence copper boom was a mixed blessing. While
the revenue windfall financed substantial investment in social
infrastructure, it also encouraged GRZ to take on a much larger role
in economic production than it could handle and to incur expenditure
that could not be afforded once the boom ended. Failure to adjust
expenditure to falling mining revenue set off a downward spiral of
fiscal deficits, inflation and borrowing – effectively bankrupting the
state. Meanwhile, attempts to industrialise through import
substitution only succeeded in turning Zambia into a high cost, import
dependent economy. Once foreign exchange dried up parastatal losses
accumulated –compounding fiscal problems and threatening firms’
survival.The inevitable outcome,aggravated by the failure of
agriculture policy, was a collapse in production and in funding for
basic public services – andincreased poverty.
The reversal of many UNIP policies by MMD succeeded in steadying the
ship. Privatisation of the mines was a landmark, leading to the
longest period of growth in Zambian history–greatly assisted by the
secondcopper boom. Together with trade liberalisation, the end of
parastatal bailouts, the abolition of most subsidies and debt relief
this helped restore fiscal and macro-economic stability. With growing
mineral revenue, this led to the creation of meaningful fiscal space
for the first time in 30 years- and the opportunity to make real
inroads into poverty. However, while expenditure on basic services
increased significantly from the early-2000s, much of the fiscal space
was wasted on political projects and poverty reduction was largely
confined to urban areas. With no administration capable of
implementing effective agriculture policies, the gap between urban and
rural areas continued to widen.
While it is too soon to draw definite conclusions, there are worrying
signs that the PF administration has failed to learn from history and
is repeating mistakes from the first copper boom.Re-nationalisations
and increased interventionism indicate greater faith in the capacity
of the state to manage the economy than the track record supports.
Meanwhile, commitments in 2013 on wages and roadsalone could easily
add 5% of GDP to public expenditure – more than total revenue from
mining. When other measures such as the creation of 29 new districts,
moving the headquarters of Southern Province and rebasing the Kwacha
are taken into account, expenditure looks set to increase
substantially – for little economic return. With little prospect of
mining revenue increasing much above its 2012 level of 3.8% of GDP,
Zambia appears in danger of a return to unsustainable fiscal deficits
and heavy borrowing – with the poor losing out once again.
Read the full post here http://thezambiavoice.org/2013/10/24/explaining-zambian-poverty-a-history-of-non-agriculture-economic-policy-since-independence/
Posted by
yongwe
October 25, 2013 at 9:11 am
logical analysis
Anonymous
October 25, 2013 at 9:39 am
religion + ubututu = poverty
Mansa Musa
October 26, 2013 at 3:38 pm
Can’t agree with you more!
mojo
October 25, 2013 at 10:40 am
@lesa kumulu Kaunda panshi,maybe thats where the curse of poverty came from howelse do we explain our suffering in the midst of plenty.KK should seek the face of GOD and repent also appologise to the nation.LESA KUMULU KAUNDA PANSHI????????????
katwishi mukwai
October 25, 2013 at 11:43 am
I have said it before,PF is taking the country backwards.What will happen to our when we start paying back these loans?
Abakuchaume
October 25, 2013 at 12:05 pm
The problem is that, there are people in our mother land who think having the mines in foreign hands will make our economy grow. I remember the Zccm days when the mines were doing great and down the years corrupt minds were born and the much earned revenue from the mining companies began to go their wealth creation avenues. We never removed those corrupt elements from our system but we only managed to privatise the mines. I do believe that nationalising can do our Zambia good. We just need to work out a corrupt free system of doing business. May God help Zambians.
AKABONDO
October 25, 2013 at 12:16 pm
Not with ‘ubomba mwi bala, alya mwibala’ mentality. Zambia will ever be corrupt free unless uprooted from the top
kcm
October 25, 2013 at 1:46 pm
Not yet independent.when all our mines are in the hands of foreigners
wayne
October 27, 2013 at 4:56 am
because governments have no business being in business. Why do Africans think nationalization is the answer when no one in history has made it work?
mosi
October 25, 2013 at 6:39 pm
Its because we have allowed it if you go to a mine like Lumwana you will find whites called experts getting exorbitant amounts at the expense of poor zambians who even do better than these whites. If I may know why do we have to bring an Australian on the position of maintenance manager when UNZA is busy producing Mechanical and Electrical engineers every year babuteko please twafweni ababantu balesenda more than ZMW 200 000 every month when a zambian is just on ZMW 20 000 why???????????????? Can someone help!!!!
wayne
October 27, 2013 at 4:58 am
cause a UNZA education has little too no value. The professors at UNZA are not qualified and do not meet international standards for a quality education
concerned zedian MKJ
October 26, 2013 at 9:58 am
As long as we keep on borrowing we will remain poor. The whites knows that once africa is free from poverty things will turn otherwise they will keep on coercing our govts to borrow from them just to keep us at the same level “poverty”. Whenever we have leaders like Mugabe, Gadaffi the whites impounds sunctions on such countries knowing that it will come out of the poverty line. The price of same Copper you are talking about is controlled by the whites. Look at the arab nations, there is civil strife because of the same whites. They are busy stealing barrels of oil in exchange with arms.
wayne
October 27, 2013 at 5:08 am
you are a moron. What sanctions on Libya? What oil are they stealing in exchange for arms in the middle east. Mugabe is an ***** who destroyed a nation and the lives of millions of people. Stop blaming the whites for your stupidity, your inept and thieving governments. If whites are so much in control, why are the other 160 non black nations doing so well along with Botswana and SA. The reason your not doing well, is your lack of quality education and your governments commitment to ensure that continues. Why, because and educated population would not allow the morons in government to continue. Uneducated people or more easy to manipulate and thus control.
Blame game
October 26, 2013 at 1:39 pm
Its just GREED in Africa nothing else . In a free market economy the have-nots are stifled with no one to help them . MMD’s policies were ok but poorly monitored as we saw the highest levels of corruption,careless expenditure and wealth gathering which still go on today . Ndise che ma crooks tonse .
shongola
October 26, 2013 at 3:06 pm
Pension at 65. And Civil servants are quite!!!that’s why we are poor!!
gershom chama
October 26, 2013 at 5:25 pm
send z whits 2 helllll en we wil b frrrreeeeeeeeee!!!!
wayne
October 27, 2013 at 5:12 am
you’ll just be more broke. If all the wealth in the world was given to Africa, even more people would be impoverished. Over 1 trillions dollars has been given to Africa. Thats more then what was give to Europe to rebuild after the second world war. All aid should be stopped, so that africa learns to survive on its own.
Abu
October 27, 2013 at 1:39 pm
In zambia we hav everythin but people brains nid to be straightened they ur polluted wit poverty
Ngombala Muhapi wa Mafatsi
October 27, 2013 at 10:42 pm
With an exception of Levy Mwanawasa, Zambia’s all other presidents since independence were fully blown ****** idiots. That is the reason why we are worse off 49 years down the line. I mean, one is sometimes left crying to think of “Oil from Grass, ZAMTROP, Kanitundila or the current circus of turning the country around in 90 days only to expose it to the stinkiest tribally bigoted excrement”.
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October 28, 2013 at 12:21 pm
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